The move has drawn strong support from Democratic lawmakers and millions of California workers who are now earning the state’s current minimum wage of $10 an hour. But the tiered pay increases have elicited sharp criticism from business groups and others who say they will fuel reduced hours, layoffs and increased automation as companies scramble to find ways to cut costs.

“Employers who can will figure out a way to reduce the number of workers they have,” Inland Empire economist John Husing said, when the wage-hike agreement was first reached. “And those who cannot will raise their prices.”

How it works

The plan would allow the governor to pause any scheduled increase for one year in the event of an economic slowdown or a budget deficit that is forecast for the current fiscal year or either of the upcoming two years when the wage hike is figured in. Businesses with 25 or fewer employees will have an extra year to comply.

Here’s how the pay hikes will be phased in:

• In 2017 California’s current minimum wage of $10 an hour will rise to $10.50 an hour.

Kevin Smith handles business news and editing for the Southern California News Group, which includes 11 newspapers, websites and social media channels. He covers everything from employment, technology and housing to retail, corporate mergers and business-based apps. Kevin often writes stories that highlight the local impact of trends occurring nationwide. And the focus is always to shed light on why those issues matter to readers in Southern California.